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REPORT OF THE BALNEOLOGTST, ROTORUA. Rotorua, 2nd May, 1918. I have the honour to present my annual report on the Rotorua baths. As forecasted in my last annual report, there has been a noticeable diminution in the receipts at the baths, both from medical and tourist sources. This has been almost inevitable, in view of the growing restrictions on travelling, and is less than might reasonably have been expected. The total receipts, however, have been almost identical with those of last year, owing to the increased work done for the Defence Department, and were it not for considerable amounts remaining outstanding the total receipts would have shown a marked increase. Apart from the actual financial returns, however, the amount of work done has increased enormously. Owing to the steadily mounting number of wounded to be treated, the work performed by the staff is twice what it was in pre-war days, and for a great proportion of this work no corresponding increase of receipts can be shown. It is proposed by the Defence Department to increase very greatly the amount of treatment to be carried, out at the King George V Hospital, and this will correspondingly diminish the strain on the baths establishment, a strain rapidly approaching the breaking-point, and will correspondingly increase the bath facilities for the general public. During the year Mr. A. E. Wilson has been appointed to the new post of Baths Superintendent. The appointment has enabled a more close supervision to be exercised over the establishment, and I gratefully acknowledge the relief and assistance afforded thereby to me Where work has been performed ungrudgingly all round it is hard to single out any individual for special commendation, and I desire rather to place on record that the work in all departments has been very satisfactory, and has been maintained at a high standard. Arthur S. Herbert, Government Balneologist. REPORT OF THE NEW ZEALAND GOVERNMENT AGENT, SYDNEY. Sydney, N.S.W., 11th April, 1918. I have the honour to submit my annual report for the year ended 31st March, 1918. Passenger-booking. Compared with the previous year the amount taken for the, sale of tickets in connection with booking passages to and through the Dominion shows a decrease. The war, with the various regulations that exist in Australia and New Zealand, has principally caused the falling-ofi in the tourist traffic, but the large general strike which occurred in Sydney during the months of August, September, and October completely upset the shipping between the two countries, and in consequence the tourist traffic during these months was completely disorganized. In my last annual report I pointed out how the shipping companies had made it a rule to only issue single tickets to and from the Dominion, and this practice has unfortunately been maintained, and has undoubtedly again been the means of preventing many people from, visiting New Zealand. Immigration. Some fifty foreigners were examined during the year with a view to seeing if they could pass the education test as prescribed by the Immigration Restriction Act, and as the majority of the applicants were able to do this certificates were issued to them. Advertising. The appropriation allotted to this office for advertising the Dominion in New South Wales was spread over a number of excellent channels, and included advertising on various steamers, dropcurtains at vaudeville and picture theatres, and in publications. The Dominion obtained some very excellent free advertisements during the year, including illustrated articles in the P.F.A. magazine and the Austral-Briton newspaper ; a pictorial supplement containing many New Zealand views, which was issued in connection with the' Christmas number of the Tweed Call ; and an exhibition in Sydney of kinemacolor pictures of scenes in the Dominion. The kinemacolor pictures were shown in Sydney for three weeks on end at one of the leading picturetheatres, and it is estimated that they were seen by about twenty-five thousand people. On the opening night a number of the leading citizens of Sydney and. suburbs were present at the invitation of the Department. During the year the scenic films entitled. " The' Southern Alps of New Zealand," and " Scenes in New Zealand," which, are kept for advertising purposes, have frequently been loaned to various pictureproprietors for exhibition in Sydney and suburbs. New-Zealanders visiting Sydney. I am pleased to report that the office hag been greatly availed of by New-Zealanders who have passed through Sydney during the year. Many of the visitors came for business purposes, and have found the office exceedingly useful in obtaining unbiased information relating to business in general in Sydney. The, office has also been greatly used by visiting New-Zealanders who have wanted to be absent from the Dominion for a longer period than that authorized by the Government.

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